Unemployment benefits, reservation wages and wages obtained Cover Image

Zasiłki dla bezrobotnych a płace progowe i płace uzyskane
Unemployment benefits, reservation wages and wages obtained

Author(s): Paweł Kubiak
Subject(s): Economy
Published by: Łódzkie Towarzystwo Naukowe
Keywords: unemployment; employment; unemployment benefits; reservation wage; wage

Summary/Abstract: Unemployment benefits are benefits paid during the job search. The impact of these benefits on the labour market is not clear. It is often stated in the literature that one of the basic channels of impact of unemployment benefits on the labour market is based on the reservation wage. This paper attempts to answer the question whether the reservation wages in Poland are changing under the influence of unemployment benefits. The survey was conducted based on individual data from the Polish Labour Force Survey (BAEL). The results confirm the influence of the benefits system, both on the reservation wages and on the wages obtained after the job search. Unemployment benefits in Poland raise the average reservation wages for job seekers, and this effect persists even after the end of the benefit period. Job seekers who receive unemployment benefits obtain slightly higher wages than other unemployed.

  • Issue Year: 2014
  • Issue No: 93
  • Page Range: 207-221
  • Page Count: 15
  • Language: Polish